Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

During pandemic, Internet and electronic government services became the first necessity — Bagdat Mussin

Tuesday, 28 July 2020, 11:17:44

At the government session chaired by Prime Minister Askar Mamin, First Vice Minister of Digital Development, Innovation and Aerospace Industry Bagdat Mussin reported on the development of e-commerce in Kazakhstan.

According to Mussin, during the pandemic, the Internet and electronic government have become essential services.

The development of e-commerce is a pressing issue in these challenging times. This year has seen its high growth rates. So, for 6 months of this year, the number of purchases in online stores reached 19.5 million goods. The number of purchases in Kazakhstani online stores has doubled — from 7 million to 14 million.

There are 4 main areas in e-commerce: electronics, food and products, clothing, pharmaceuticals. All work on domestic platforms.

According to Mussin, market analysis shows that during the pandemic, the structure of online consumption of citizens has changed. People have changed their priorities. There is a decrease in purchases of clothing and cosmetics. But at the same time, the population began to buy more food, medicine and baby products online.

The production of many commodity items that are relevant during a pandemic are available in Kazakhstan. Accordingly, it is proposed to actively work on bringing Kazakhstani manufacturers online.

During the pandemic, FoodTech and PharmTech became actively developing markets.

“For example, purchases of food products at the Kazakhstani supermarket Arbuz.kz increased up to 7 times during April-June compared to 2019. For the further emergence of online food services in the regions, we with Arbuz.kz, Chocofood and other market players will train local entrepreneurs in online sales,” Mussin said.

In the pharmaceutical segment today, there are problems with selling antibiotics online, as this requires an online formulation.

“To this end, we, together with the Ministry of Healthcare, will link online stores with telemedicine and the provision of online prescriptions,” said Mussin.

It should be noted that all Kazakhstani players have to compete with international start-ups, which are provided with long-term venture financing from abroad. For this, it is important to develop the domestic venture capital market, which will increase the competitiveness of Kazakhstani companies and bring them to international markets. In this direction, a draft law regulating venture capital is being worked out. There is also an agreement with Baiterek NMH JSC on attracting funds from QazTech Ventures to Kazakhstani startups.

The main tool for e-commerce is the development of logistics infrastructure. Kazpost JSC is working and opening three fulfillment centers for business.

Due to market needs, it is planned to open 20 fulfillment centers in the country by 2025. At the same time, the market begins to independently develop its own infrastructure. They need warehouse construction and last mile solutions.

Also in e-commerce, one of the key elements is the development of the last mile. Customers want to receive their goods in a fast and convenient way. The infrastructure of Kazpost allows solving this issue with the help of parcel terminals and parcel supermarkets.

Today, about 4 thousand front offices provide services. Market players are working to reduce delivery times. Today it is 1 to 3 days.

It should be noted that the market is open to everyone. More than 570 companies operate in the courier services market.

Kazakhstan is actively working to develop its transit potential. In this direction, Kazpost is implementing a Bond warehouse project on the territory of the Khorgos ICBC. Provides transit of goods both to Russia and to European countries.

Kazpost provides transit of goods from Germany and Great Britain to Russia and Central Asian countries.

The development of the penetration of e-commerce will be the transition of offline business to online.

“Our goal is to help offline entrepreneurs start selling online. To do this, we must teach seemingly simple and primitive things how to properly show our content to a client online — photographing a product, packaging a brand, and so on, which is very important in e-commerce,” said Mussin.

The importance of the availability of digital services, which will solve the headache of entrepreneurs, was also noted.

“We will collect them in Astana Hub. We are ready, together with the Ministry of Labor and NCE Atameken, to create a special program to train entrepreneurs in online sales throughout Kazakhstan. It is necessary to involve successful Kazakhstani Internet entrepreneurs in this work,” said the first vice minister.

An important step is to bring agricultural producers online. It is proposed to create a digital platform for agricultural products, which will directly link large retailers and agricultural producers. This will allow agricultural producers to open direct access to sales. They will also be able to get convenient banking and logistics services, organize the process of storing goods in the USC. This will exclude all intermediaries, and accordingly the price for the end consumer is reduced. The digital platform will also enable agricultural producers to enter international markets.

In conclusion, Mussin spoke about the trends that are taking place in the world.

“During the pandemic, the e-commerce market has become a turnover driver. For example, Amazon has created over 100 thousand new jobs. The turnover of Russian sellers on Aliexpress Russia has tripled. Kazakhstan online store Flip.kz during the pandemic increased the number of jobs by 20%, due to the growth of e-commerce. This suggests that online trade can not only save jobs, but also provide an opportunity to increase them,” said Mussin, noting that the ministry will continue to work on the transfer of industries to online, especially regions, together with other ministries. This will ensure the turnover of goods in the country's economy, make purchases and receive all services without leaving home and maintaining social distance among the population.

First Deputy Prime Minister Alikhan Smailov noted that e-commerce is one of the priority areas of the economy of Kazakhstan, which contributes to the transition to non-cash payments, a decrease in the volume of shadow trade and the general growth of entrepreneurship.

"For the first half of 2020, the total volume of the e-commerce market reached 435 billion tenge, which is 2.2 times more compared to the same period in 2019," said Smailov.

To stimulate the development of the e-commerce market, it is necessary to actively work.

First, it is important to ensure access to affordable long-term finance.

Second, with the involvement of Kazpost and courier companies, it is necessary to build a supply chain from large warehouses to a retail recipient.

Third, Ministry of Trade and Integration, Ministry of Labor and Social Protection of the Population, Ministry of Digital Development, Innovation and Aerospace Industry, together with NCE Atameken, should provide training courses for a wide range of entrepreneurs to trade online.

A roadmap for the development of e-commerce in the Republic of Kazakhstan until 2025 has been developed. Taking into account today's discussions, it is necessary to carry out appropriate work.


News feed
15 September 2020, 12:26
Work underway in Kazakhstan to saturate domestic market with basic products for stabilizing prices — Ministry of Agriculture
15 September 2020, 10:27
Price increase for socially significant food products will not exceed 6% by the end of 2020 — Ministry of Trade and Integration
15 September 2020, 10:07
Prime Minister of Kazakhstan Askar Mamin instructs to ensure strict control over stability of prices for socially significant food products
15 September 2020, 09:44
Under Industrialization Map in Kazakhstan, 206 projects worth 1 trillion tenge to be introduced in 2020
15 September 2020, 09:29
For 8 months of 2020, 4.3 thousand new jobs created under Industrialization Map — Ministry of Industry and Infrastructure Development
14 September 2020, 22:47
Introduction of Industry 4.0 in Kazakhstan, or how smart factories worked during quarantine period and global pandemic
14 September 2020, 18:42
Interdepartmental Commission adopts decisions on work of businesses
14 September 2020, 14:02
Government session to be held Sep. 15 in Ukimet Uyi
14 September 2020, 10:51
Strategic directions for development of Eurasian Economic Integration until 2025 considered at session of EEC Council
11 September 2020, 13:07
Prime Minister Askar Mamin introduces Minister of Emergency Situations Yuri Ilyin
10 September 2020, 23:45
Distance learning, epidemiological situation, provision of villages with Internet — how educational process organized in Kazakhstan
10 September 2020, 13:12
Production of electronics industry of Kazakhstan to increase 8.5 times over 3 years
09 September 2020, 15:06
Roman Sklyar pays working visit to Atyrau region
09 September 2020, 11:59
Ministry of Healthcare on CVI: In Kazakhstan, there is a 6-fold decrease in bed occupancy
09 September 2020, 11:31
Food production for 8 months of 2020 increased by 3.6% — Ministry of Agriculture
09 September 2020, 11:21
Market of Kazakhstan fully provided with petroleum products of domestic production — Nogayev 
09 September 2020, 11:19
In Kazakhstan, total volume of container transit traffic increased by 37% — Ministry of Industry and Infrastructure Development
09 September 2020, 11:02
Measures taken stabilized epidemiological situation in the country — Prime Minister of Kazakhstan Askar Mamin 
09 September 2020, 10:54
Following results of 8 months of this year, positive dynamics remains in basic sectors of economy
09 September 2020, 10:53
Government adopts National Plan for Implementation of Address of the Head of State to People of Kazakhstan
09 September 2020, 10:25
604 loans issued under Economy of Simple Things Program — National Bank
09 September 2020, 10:20
Following results for 8 months of 2020, state budget received 5.5 trillion tenge of revenues — Ministry of Finance
09 September 2020, 10:13
Growth in construction, agriculture and manufacturing industry — Ruslan Dalenov reports on results of socio-economic development for 8 months of 2020
09 September 2020, 10:06
Draft National Action Plan for implementation of President's Address includes 10 key areas
07 September 2020, 17:10
It is planned to double fines for violations in the field of environmental protection — Magzum Mirzagaliyev spoke about implementation of President’s Address
07 September 2020, 16:33
Digitalization of land relations to eliminate human factor, bureaucracy and corruption — Omarov on implementation of President's Address
07 September 2020, 16:27
Beibut Atamkulov on implementation of President's Address: Mechanism for subsidizing rent to be approved by the end of 2020
07 September 2020, 16:14
Government session to be held Sep. 9 in Ukimet Uyi
07 September 2020, 15:39
Focusing on industry and development of transport infrastructure in Kazakhstan — Roman Sklyar speaks about main aspects of President's Address
06 September 2020, 09:34
Video Digest: Main events of the week, No. 76
05 September 2020, 14:10
Session of EEC Council: Several issues of further development of Eurasian economic integration discussed
05 September 2020, 13:41
Production of stationary ventilators opened in Kazakhstan
05 September 2020, 03:37
Construction, Support for SMEs and Investment — how East Kazakhstan Region developed during the pandemic
05 September 2020, 01:46
Briefing to be held on measures to implement Address of the Head of State
04 September 2020, 17:33
New concept for improving local self-governance to be developed — Ruslan Dalenov on implementation of President's Address 
04 September 2020, 13:31
Additional 200 billion tenge to be allocated to support SMEs — Alikhan Smailov on implementation of President's Address
03 September 2020, 16:27
Ministry of Education and Science to develop uniform requirements for online education platforms
03 September 2020, 16:18
Implementation of President's Address: Free clubs to open in schools, National Crafts centers — in regions 
03 September 2020, 16:01
Taldykorgan – Ust-Kamenogorsk highway to be commissioned this year — Askar Mamin
03 September 2020, 15:29
Creation of 20 large medical centers and production of medicines within country — Shoranov on implementation of President's Address
03 September 2020, 15:17
How will mechanism for using pension savings work — Birzhan Nurymbetov speaks on implementation of President's Address
03 September 2020, 15:13
Briefing to be held on measures to implement the Address of the Head of State
03 September 2020, 13:09
Modernizing country's social sphere and improving welfare of citizens — Tugzhanov on main aspects in implementation of President’s Address
02 September 2020, 17:18
Additional payments for classroom guidance and checking exercise books doubled since September 2020 — Aimagambetov
02 September 2020, 17:08
Ministry of Healthcare plans to purchase 100 mobile medical buses for rural settlements
02 September 2020, 16:38
Kazakhstan launches reform of local police service on principle of ‘police within walking distance’
02 September 2020, 15:25
Briefing to be held on measures to implement the Address of the Head of State
02 September 2020, 14:47
Development of cooperation to allow increasing competitive advantages of small-scale production — Ministry of Agriculture
02 September 2020, 14:22
Ministry of Energy carrying out large-scale work to reorient oil and gas sector to production of export products 
02 September 2020, 13:46
Ministry of Labor to develop mechanisms for payment of pensions and benefits through digital ‘social wallet’
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.